Former Kentucky Insurance Commissioner Roy Woodall will be President Obama's nominee for the insurance member of the Financial Stability Oversight Council (FSOC).
Last week, NU Online News Service reported that the White House was believed to be conducting a background check on Woodall in anticipation of nominating him as the independent member of the FSOC with insurance expertise.
President Obama made the announcement in a statement detailing several other nominations for administration posts. President Obama says in the statement, "It gives me great confidence that such dedicated and capable individuals have agreed to join this administration to serve the American people."
Industry members have made clear that filling the post should be a priority for the administration, and associations offered praise for the Woodall nomination.
David Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI), says: "We are pleased that the Department of Treasury has listened to the calls from the insurance sector and congressional leaders from both sides of the aisle to fill this critically important position. [Woodall] brings extensive experience in the insurance sector and an understanding of the state insurance regulatory system."
The associations all tried to differentiate property and casualty insurance from other financial-services institutions that might pose a systemic risk to the economy and therefore fall under FSOC regulatory jurisdiction.
Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, says: "As a former Treasury official and state insurance regulator, [Woodall] understands the role of insurance in the economy and is well aware that mutual insurance companies did not contribute to the economic crisis or pose an ongoing risk to economic stability. With this knowledge, [Woodall] will help focus the designation process for systemically important financial institutions [SIFI] on those companies who, through their participation in high-risk activities, pose a true risk to the American economy."
